Bharti Airtel in line for US$2 billion funding from Chinese banks

Bharti Airtel has secured financing of up to US$2.5 billion from China Development Bank (CDB) and Commercial Bank of China.

CDB is reported to have put up US$2 billion in credit, with a further US$500 million coming through from Commercial Bank of China.

According to an Airtel statement, its agreement with CDB represents the single largest bilateral commitment by the bank to an Indian company, and its largest to any telecom operator globally.

The funds are still subject to final approval, and Airtel will be able to draw on them over a long period of time, with loan maturities extended up to nine years.

Airtel is forecast to count over 250 million total mobile connections by the end of 2016, maintaining its position as the country’s largest operator.

Earlier this year, Airtel also announced an agreement with China Mobile to collaborate on the growth of 4G, while working on a joint strategy for procurement of 4G devices, including smartphones. The company already has existing network equipment deals with Chinese vendors Huawei and ZTE.